2017 is key year for access to UK payment systems

2017 could be a key year for access to payment systems in the UK, with up to 10 new providers seeking to gain access to the interbank payment system, according to a report by the Payment Systems Regulator (PSR).

10 new direct participants are expected this year across Faster Payments, Bacs and CHAPS, adding to the new participants that joined in 2016 (including Raphaels Bank, Metro Bank, Starling Bank, ClearBank and Monzo);

the implementation of the second EU Payment Services Directive (PSD2) at the beginning of 2018; and

the potential consolidation of three operators into one (the operators of Bacs, FPS and Cheque and Credit (C&C)).

The PSR's managing director, Hannah Nixon, said: “Better access to payment systems can open the door for small fintech firms and challenger banks so that they can compete directly with the high street banks on a level playing field... We expect this year will be the most successful, with more challenger banks and fintech companies expected to gain either direct or more innovative ways of accessing the interbank payment systems than in any other year. They’ll also be able to do this cheaper and quicker than ever before.”